Research On Tax Compliance Risk Identification Of Overseas Investment By Chinese Enterprises

With the rapid development of economic globalization and international investment cooperation,the international community has actively promoted investment to develop in a sustainable way.Some international organizations and countries have issued compliance documents to manage compliance with cross-border investment companies.Under the guidance of the "Going Global" strategy,the scale of overseas investment of Chinese enterprises is continuously expanding,and they encounter more and more compliance risks.To this end,China also issued the Guidelines for the Compliance Management of Enterprises' Overseas Operation in 2018,which implements compliance management for overseas investment enterprises.Taxation as an important cost of an enterprise determines the profit of the enterprise.Tax compliance risk identification can effectively avoid tax violations,reduce costs,and increase corporate profits.Compliance means that the company's business activities and employee behavior must abide by domestic and international laws,regulations and regulatory requirements,abide by business rules and ethics,and comply with the company's rules and regulations.Compliance risk refers to non-compliance,companies may be subject to legal sanctions,regulatory penalties,resulting in negative impact on property and reputation.Tax compliance risk refers to the possibility that an enterprise 's tax-related behavior violates tax-related laws and regulations,international treaties,and regulatory provisions in the process of overseas investment,and is subject to legal sanctions and regulatory penalties,which ultimately leads to the possibility of corporate assets and reputation damage.If an overseas-invested company fails to identify tax_compliance risks and its tax-related behavior is not compliant,it will need to bear legal responsibility.The content of the tax compliance risk identification standard for overseas investment of enterprises must be comprehensive.The standards for tax compliance risk identification include not only China 's tax-related laws and regulations,but also the host country 's tax-related laws and regulations;not only the host country 's existing tax laws and regulations,but also the host country's tax administrative enforcement requirements and judicial precedents;and It also includes the compliance commitments made by enterprises;in addition,the standards for tax compliance risk identification also include the bilateral tax treaties signed between China and the host country and the international tax treaties that China and the host country participate in.There are various methods for identifying the risks of taxation compliance of overseas investment by enterprises.Outbound-investment enterprises must coordinate with multiple departments,and unite multiple entities,employ multiple means to identify new and changed tax compliance risks.An enterprise should set up a tax compliance department and identify tax compliance risks through internal channels such as tax compliance consultation,tax compliance review and tax compliance assessment.Tax compliance risks can also be identified through external channels such as consulting external legal advisors,professional service agencies,and continuously tracking relevant information from tax authorities and other regulatory agencies.In addition,the government will help enterprises identify tax compliance risks by providing tax service guidance and tax compliance training for overseas investment.The overseas investment of an enterprise must not only comply with the laws and policies of our country,but also the host country's.Not only should taxation be in compliance,but also the production and operation of enterprises should be in compliance with all aspects.Only in this way can enterprises avoid the risks in the process of outbound investment,thus enhancing their own strength and enhancing their international competitiveness.In addition,enterprises should,at the time of achieving tax compliance,strive to obtain more investment income,promote sustainable development of enterprises,and promote the implementation of the Belt and Road Initiative.